Navigating Volatility: Tactical Moves Amidst a Global Selloff

April, 2025: Over the past 100 days, global markets have been adjusting to the

unpredictability of U.S. policy, under Trump.

As a trader based in India, I view these episodes not with alarm, but as opportunities to

recalibrate.

This is more true, for Indian markets, as such a sharp, sentiment-driven decline has been

influenced more by global rhetoric than domestic fundamentals. What should one so then, in such volatility?

1. It is important to be diversified. In my personal portfolio, I had shorted the dollar against

the yen at 156.50 and booked some tactical profit at 149.50.For those unfamiliar with the

terminology, that’s a 7-big-figure move. This trade not only locked in healthy gains but

served its purpose: to hedge the valuation drawdowns on Indian equities. The bond portfolio has also outperformed equities by a long way! That’s the quiet power of diversification.

2. With Nifty flirting with the 22,000 mark again, this correction has created entry points that

won’t last long once the policy noise fades, and last quarter earnings don't disappoint much. Brent at 65 is great for the Indian macros as well.

3. I would definitely limit the exposure though, to both US bonds and equities, as the

uncertainty is still high, and move funds back home. 

4. I would keep the asset allocation tilted towards debt i.e. 40-60 and recalibrate to 50-50 on dips in equities.

Markets are emotional in the short term—but precision, risk control, and a macro lens are

what separate traders from tourists.

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